Canara Bank has officially exercised its call option on its ₹1500 Crore Basel III Compliant Additional Tier I Bond (ISIN: INE476A08134). The call option date is set for December 2, 2026, with interest accrued until this date also being paid. This action, approved by the Reserve Bank of India, will result in the extinguishment of the bond and cease the Bank’s liability to the bondholders. The record date for this exercise is November 17, 2026.
Canara Bank Exercises Call Option on Basel III Bond
Canara Bank has announced the exercise of its call option on the ₹1500 Crore Basel III Compliant Additional Tier I Bond. This significant financial move, confirmed on October 30, 2026, involves a bond issued on December 2, 2021, with a coupon rate of 8.05% per annum. The call option date is set for December 2, 2026, which marks the effective end of the bond’s tenure for bondholders.
Key Dates and Implications for Bondholders
In accordance with the terms of the Information Memorandum, the Bank has decided to exercise this option. Necessary approvals have been obtained from the Reserve Bank of India, with their letter dated October 27, 2026. The record date for the purpose of this call option exercise has been fixed as November 17, 2026. The principal amount, along with accrued interest from February 12, 2025, to December 1, 2026, will be paid on the call option date, December 2, 2026. Following this payment, the bond will no longer carry any obligations, and the Bank’s liability towards the bondholders will be extinguished.
Payment Mechanism and Bond Extinguishment
Payments will be processed via RTGS/NEFT/Direct Credit into the accounts of the bondholders listed in the NSDL/CDSL records as of the closure of the record date. This payment will serve as a legal discharge of the Bank’s liability. Upon successful remittance and verification of formalities, the bond held in demat form within NSDL/CDSL accounts will be extinguished. The terms and conditions stipulated in the Placement Memorandum will govern this entire process.
Contact Information for Bondholders
For any queries or further information regarding this exercise, bondholders are directed to contact the Bank’s Registrar and Share Transfer Agent (RTA), KFin Technologies Limited. The contact details for KFin Technologies Limited are provided, including their address at Selenium Tower B, Plot No.31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad, with email [email protected] and a toll-free number 1800 309 4001.
Source: BSE
